Iberian Telcos in Hot Water Over Non-compete Agreement
Iberian telecommunications companies Telef
The Commission has sent a list of objections to the two companies regarding their non-compete agreement. Telef
The companies repealed the non-compete agreement in February 2011, but the Commission says this does not erase the fact that the agreement existed in first place, and it is continuing with its antitrust investigation.
"Non-compete clauses are one of the most serious violations of fair and healthy competition," said the Commission. The regulator believes that the object of the agreement was to partition markets, resulting in potentially higher prices and less choice for consumers. Article 101 of the Treaty on the Functioning of the European Union prohibits agreements that "directly or indirectly fix purchase or selling prices" and "share markets or sources of supply."